Sales generating materials, typically discount coupons or sweepstakes prize tickets, have long been distributed by manufacturers to merchandise their products and by retail stores to attract consumers to their particular stores. Both coupon types are typically distributed on a large scale basis as free-standing inserts ("FSIs") in newspapers, direct mail, door to door distribution, and other forms of mass distribution. Such coupons are generally of limited effectiveness in increasing consumer purchases. For example, redemption rates for free-standing inserts are approximately in the range of one to three percent (1-3%) and are decreasing every year.
A further problem of FSIs as a coupon distribution system is the fraud problem known as gang-cutting. In this scheme, the coupons are diverted from the distribution channel, then cut up into individual coupons, then bundled and submitted for redemption by dishonest retailers through the usual redemption channels. The manufacturer then credits the redeeming retailer with the value of the coupons, even though a consumer never actually purchased a product using the coupon, which would warrant the grant of such a credit. This problem is sufficiently significant that coupons distributed through a FSI are usually limited in their dollar value. Even without such fraud, there is still a significant misredemption rate arising from incorrect identification of the coupons.
In order to alleviate these problems, consumer product firms are perpetually seeking ways to identify and target their sales promotions to their core constituencies who will respond to the marketing effort. A series of systems have been suggested for creating coupon systems which identify the consumer who redeems the coupon, but typical systems which require the consumer to fill out a form, or to use computer program to enter data then print coupons, or to use a store identification card, often have low rates of compiling complete data.
As a consequence, numerous firms are in the business of creating and leasing mailing lists to consumer product marketing companies, who will often process these list in various ways in an effort to select customers to receive a coupon, mailing or other advertising or marketing solicitation that are most likely to be responsive to such solicitation. As noted, the typical response rate for an FSI is quite low; the response rate is also very low for uncontrolled mass mailing of coupons or other sales solicitations for consumer products. Typically, such mass mailed items, such as brochures, flyers, and the like contain inquiry cards or product promotion redemptions, which can be returned to so called fulfillment houses for credits or refunds; or they may contain coupons redeemable at retail where a customer will receive price discounts on new product purchases. The coupons redeemed at retail are also returned to fulfillment houses, but do not contain nor are they usually required to have the customer name and address. While millions of such coupons are redeemed at retail annually, the product manufacturer rarely learns the name and address of the redeeming customer. Given the expense of printing and distributing such sales solicitations, there is an exceptional need for methods to create and maintain mailing and other lists of consumers who are likely to be motivated to purchase a particular product.